DealForma’s neurology review highlights significant investments in RNA and gene therapies, precision psychiatry, CNS-targeted small molecules, and neurodiagnostics through partnerships, M&A, venture funding, and IPO activity. In R&D partnerships, Sarepta licensed RNA-based therapies for Huntington’s, muscular dystrophy, ataxia, and pulmonary fibrosis from Arrowhead for $500 million upfront, $325 million in equity, and up to $10 billion in milestones. Novartis acquired global rights to PTC Therapeutics’ Huntington’s drug (PTC-518) for $1 billion upfront and $1.9 billion in milestones. At the same time, Astellas secured an option for AviadoBio’s gene therapy (AVB-101) for frontotemporal dementia with a $30 million upfront payment, $20 million in equity, and $2.2 billion in potential milestones.
In M&A, Lundbeck acquired Longboard Pharmaceuticals for $2.6 billion, targeting Lennox-Gastaut syndrome and developmental epileptic encephalopathies, Semnur merged with Denali Capital in a $2.5 billion SPAC deal to advance its non-opioid pain therapy, and AbbVie acquired Aliada Therapeutics for $1.4 billion, gaining an Alzheimer’s antibody and blood-brain barrier technology. Venture funding saw Seaport Therapeutics raise $225 million to advance neuropsychiatric treatments, Oura secure $200 million for smart health tracking, and HarmonyCares raise $200 million to expand in-home care for complex patients. In IPOs, Ceribell raised $207 million for its neurological diagnostics platform, Rapport Therapeutics secured $154 million to develop CNS-targeted small molecules, and Alto Neuroscience raised $148 million to advance precision psychiatry therapies.
Neurologic R&D Partnerships
During 2024, the neurologic R&D sector saw 59 partnerships worth $36.5 billion, with $2.6 billion in upfront cash and equity (averaging $97 million per deal). A significant increase from 2023, with 65 deals totaling $20.4 billion and $1 billion in upfront payments (averaging $49 million per deal). Over 2 years, 124 deals were completed, amounting to $57 billion, with $3.6 billion in total upfront cash and equity.
Top Neurologic R&D Partnerships
Arrowhead development and commercialization deal with Sarepta Therapeutics – November 2024
Arrowhead Pharmaceuticals granted Sarepta Therapeutics exclusive global rights to develop and commercialize multiple RNA-based programs targeting rare genetic, CNS, musculoskeletal, and pulmonary diseases. The deal covers four Phase I/II and III preclinical programs, including treatments for Huntington’s disease, muscular dystrophy, and pulmonary fibrosis. Arrowhead will receive $500 million in upfront cash, $325 million in equity (11.9 million shares at a 35% premium), $250 million in annual fees over five years, and up to $10 billion in potential milestones. The collaboration allows Sarepta to select up to six programs, with Arrowhead leading discovery, preclinical work, and manufacturing.
PTC development and commercialization deal with Novartis – November 2024
PTC Therapeutics granted Novartis exclusive global rights to develop and commercialize PTC-518, an oral Phase II small-molecule therapy for Huntington’s disease. PTC will continue Phase IIa and OLE trials before transferring the OLE study to Novartis within 12 months. Novartis will then assume full responsibility for development, manufacturing, and commercialization. PTC will receive $1 billion upfront, up to $1.9 billion in development, regulatory, and sales milestones, and double-digit tiered royalties on ex-US sales. In the U.S., both companies will share profits and losses, with PTC holding a 40% stake and Novartis 60%.
AviadoBio license option deal with Astellas – October 2024
AviadoBio granted Astellas an exclusive worldwide option to develop and commercialize AVB-101, an AAV-based gene therapy for frontotemporal dementia with progranulin mutations. AVB-101 is in Phase I/II trials, with initial patient dosing completed in the ASPIRE-FTD study. AviadoBio will receive up to $30 million upfront and $20 million in equity, with potential milestone payments and license fees totaling up to $2.2 billion, plus royalties if Astellas exercises its option. This partnership enhances Astellas’ gene therapy pipeline while providing AviadoBio with significant funding.
Neurologic M&A
During 2024, neurologic M&A activity saw 60 deals totaling $14 billion with contingents and $13 billion without, averaging $724 million upfront per transaction. In contrast, 2023 had fewer deals (33) but a higher total value of $38.3 billion with contingents and $36 billion without, resulting in a much larger average upfront of $2.6 billion. Over 2 years, 93 deals were completed, amounting to $52.3 billion with contingents and $49 billion excluding them.
Top Neurologic M&A
Lundbeck acquiring Longboard Pharmaceutical – October 2024
Lundbeck announced the acquisition of Longboard Pharmaceuticals to expand its neurology portfolio. Longboard’s lead asset, Bexicaserin, a Phase III serotonin 2C receptor agonist, targets Lennox-Gastaut syndrome and other developmental and epileptic encephalopathies (DEEs). The pipeline also includes LP-659, a Phase I sphingosine 1 phosphate receptor modulator for neurologic disorders. Longboard shareholders received $2.6 billion ($2.5 billion net of cash) at $60 per share, reflecting a 54% premium. The acquisition was finalized on December 2, 2024, strengthening Lundbeck’s position in neurology and rare epilepsy treatments.
Semnur reverse merging with Denali Capital Acquisition Corp. in a SPAC – July 2024
Semnur Pharmaceuticals, a subsidiary of Scilex, announced a reverse merger with Denali Capital Acquisition Corp. in a SPAC transaction. The newly combined company will be publicly traded under the Semnur Pharmaceuticals name, focusing on SP-102, a Phase III injectable non-opioid viscous gel for treating lumbosacral radicular pain. Semnur shareholders will receive a pre-transaction equity value of up to $2 billion, with expected gross proceeds of up to $40 million, depending on SPAC share redemptions. In September 2024, Semnur acquired Denali Capital Acquisition Corp. for a revised pre-transaction equity value of up to $2.5 billion. The merger is expected to close in Q1 2025.
AbbVie acquiring Aliada Therapeutics – October 2024
AbbVie announced the acquisition of Aliada Therapeutics, expanding its neurology pipeline. Aliada’s key assets include ALIA-1758, a Phase I anti-pyroglutamate amyloid beta (3pE-Aβ) antibody for Alzheimer’s disease, and the MODEL drug delivery platform, designed to enhance blood-brain barrier (BBB) crossing. Aliada shareholders received $1.4 billion in upfront cash. The acquisition was completed on December 11, 2024, strengthening AbbVie’s position in Alzheimer’s treatments.
Neurology Venture Activity
In 2024, neurology venture funding included 63 rounds, raising $3.2 billion at an average of $56 million per round. In comparison, 2023 had 55 rounds totaling $2.3 billion, with a $46 million average. Over both years, 118 rounds secured a combined $5.4 billion in funding.
Top Neurology Ventures
Seaport Therapeutics – Series B – $225M – October 2024
Seaport Therapeutics, a clinical-stage biopharma company leveraging the Glyph™ drug delivery platform (developed by Monash University), closed an oversubscribed $225 million series B financing round. The syndicate was led by General Atlantic, with participation from T. Rowe Price, Foresite Capital, Goldman Sachs Alternatives, CPP Investments, and other investors. Founding investors ARCH Venture Partners, Sofinnova Investments, Third Rock Ventures, and PureTech Health also participated. This funding follows Seaport’s $100 million launch in April 2024, bringing the total capital raised to $325 million. The proceeds will advance Seaport’s neuropsychiatric pipeline through key clinical milestones and further develop its Glyph™ platform, which has demonstrated clinical proof-of-concept.
Oura – Series D – $200M – November 2024
Oura, the smart ring maker, secured an additional $125 million in funding, following a $75 million investment from Dexcom bringing its series D round to $200 million and valuing the company at $5.2 billion. The round included participation from Fidelity Management & Research Company and Dexcom. Oura’s smart rings track sleep, heart rate, activity, and other health metrics. The funding will support product expansion, AI-driven healthcare innovation, international growth, and potential acquisitions, reinforcing Oura’s leadership in the smart ring category.
HarmonyCares – Series Unspecified – $200M – July 2024
HarmonyCares, a leading value-based in-home care provider, raised $200 million to expand its physician-led home care model for vulnerable patients nationwide. The funding round was led by General Catalyst, McKesson Ventures, and a large national payor, with participation from K2 HealthVentures, Rubicon Founders, Valtruis, HLM Capital, and Oak HC/FT. Based in Troy, Michigan, HarmonyCares operates in-home primary care practices across 15 states, with a 175+ provider network offering primary care, home health, hospice, palliative care, radiology, and lab services. The funding will drive expansion, tech development, and improved clinical outcomes at scale.
Neurology IPO Activity
In 2024, 11 neurology IPOs raised $750 million, compared to 3 IPOs in 2023 that raised $266 million. Over both years, 14 IPOs secured a combined $1 billion.
Top Neurology IPOs
Ceribell – IPO – $207.3M – August 2024
Ceribell, Inc. (Nasdaq: CBLL), a commercial-stage medtech company focused on neurological diagnostics, completed its upsized IPO on October 11, 2024, raising $207 million. The offering included 12.2 million shares at $17 per share, with underwriters exercising their option to purchase 1.59 million additional shares. Ceribell’s stock is now trading on the Nasdaq Global Select Market, supporting its mission to advance neurological condition management.
Rapport Therapeutics – IPO – $156.4M – May 2024
Rapport Therapeutics, Inc. (Nasdaq: RAPP), a clinical-stage biotech company developing small-molecule therapies for CNS disorders, priced its IPO at $17 per share, offering 8 million shares and expecting to raise $154 million (excluding underwriters’ option to purchase additional shares of common stock). Trading began on the Nasdaq Global Market on June 7, 2024, with the IPO closing on June 10, 2024. Underwriters have a 30-day option to purchase 1.2 million additional shares, potentially increasing proceeds.
Alto Neuroscience – IPO – $147.9M – January 2024
Alto Neuroscience (NYSE: ANRO), a precision psychiatry company, raised $148 million in its initial public offering on February 2, 2024. The company offered 9,246,000 shares at $16 per share, including the full exercise of the underwriters’ option for an additional 1,206,000 shares. Alto focuses on leveraging neurobiology to develop personalized treatments for psychiatric disorders. Alto Neuroscience is a clinical-stage biopharmaceutical company with a mission to redefine psychiatry by leveraging neurobiology to develop personalized and highly effective treatment options.
Also check out R&D Partnerships, M&A, Ventures & IPOs by TA – Neurologic – 2023
